USDsd is a synthetic, collateralized version of Tether that provides a stable and scalable solution to the trader market. Unlike traditional stablecoins like USDC or USDT, USDsd is designed to be stable, scalable, and censorship-resistant while offering attractive yields through advanced trading strategies.

Delta-neutral hedging is a sophisticated strategy that maintains USDsd’s peg to the US dollar while generating yield. Standard Money’s algorithms automatically execute these trades by holding long positions in crypto assets and equivalent short positions in perpetual futures to create a delta-neutral position.

1. Crypto Asset Collateral

USDsd is backed by crypto assets like ETH, BTC, and stablecoins (USDT, USDC) held as collateral

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2. Delta-Neutral Hedging

Simultaneously holds long positions in crypto assets and equivalent short positions in perpetual futures

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3. Price Stability

Fluctuations in crypto asset prices are offset by corresponding gains/losses in short positions

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4. Yield Generation

Revenue generated from staking rewards and positive funding rates on short positions

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5. Reward Distribution

All generated yield is distributed to sUSDsd holders as rewards

You acquire USDsd by simply swapping USDC or USDT for USDsd via the app app.standardmoney.com.

The protocol maintains stability via hedging strategies, and users should be aware of smart contract risk, volatility in derivatives markets, and liquidity constraints inherent in delta-neutral strategies.